C1.2 ECC3 Data by Employer

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Part C1.2Contract Data

The Conditions of Contract are selected from the NEC3 Engineering and Construction Contract (Third edition of June 2005 with amendments June 2006 – see NEC_Amendments_June_2006.asp) published by the Institution of Civil Engineers, copies of which may be obtained from Engineering Contract Strategies (telephone 011-803 3008)
Each item of data given below is cross-referenced to the clause in the NEC3 Engineering and Construction Contract which requires it. / Completion of this data in full, according to the Options chosen, is essential to create a complete contract.

Part one - Data provided by the Employer

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General

/ The conditions of contract are the core clauses and the clauses for main Option / Select the main Option that applies and delete rows that don’t apply.
A:Priced contract with activity schedule / Lump sum priced contract in which the risks of being able to provide the works at the agreed prices in the activity schedule are largely borne by the Contractor. The Employer carries some risk through the compensation event procedures. Only used when the scope of work at tender stage is fully known and capable of being priced and programmed.
B:Priced contract with bill of quantities / Priced contract with bill of quantities should be considered where the scope of work is complete to the extent that a contractor is able to submit a tender for the works based on a bill of quantities and the Employer wishes to pay the contractor progress payments based on the quantum of work completed.
C:Target contract with activity schedule / Target contract in which the financial risks are shared by the Employer and the Contractor in agreed proportions.
Adjusting the target share as between Employer and Contractor will vary the risk between one principally carried by the Employer to one principally carried by the Contractor,, and to any stage in between those extremes. Used when fairly good estimates of scope and price can be made at tender stage or where the target price is negotiated.
Target cost with activity schedule should be used where the contractor is to build up the target cost based on an activity schedule.
D:Target contract with bill of quantities / Target contract in which the financial risks are shared by the Employer and the Contractor in agreed proportions.
Adjusting the target share as between Employer and Contractor will vary the risk between one principally carried by the Employer to one principally carried by the Contractor,, and to any stage in between those extremes. Used when fairly good estimates of scope and price can be made at tender stage or where the target price is negotiated.
Target Cost with bill of quantities should be used where the contractor is to base the target cost on a bill of quantities.
E:Cost reimbursable contract / A cost reimbursable contract is a contract based on costs expended. Cost reimbursable contract should be used where the contractor is to be paid for his actual expenditure plus a fee percentage.
F:Management contract / A management fee contract is a contract under which a contractor provides consultation during the design stage and is responsible for planning and managing all post-contract activities on site and for the performance of the whole contract. Management contract should be used where the Contractor is paid a fee the cost of any construction works that he may undertake.
dispute resolution Option W1:Dispute resolution procedure / Select the secondary Options that apply and delete the rows of the secondary Options that don’t apply.
and secondary Options
X1:Price adjustment for inflation / Include where main Options A,B,C or D applies and where the contract period exceeds one year or where it is desirable to allow for price adjustment for inflation
Delete row if secondary Option does not apply.
X2Changes in the law / Include where the Employer is willing to take the risk associated with changes to the law that affect the Contractor’s costs
Delete row if secondary Option does not apply.(Not normally omitted)
X3:Multiple currencies / Consider inclusion if payment is to be made in main Options A and B in multiple currencies in order to protect the Contractor from currency fluctuations
Delete row if secondary Option does not apply.
X4:Parent company guarantee / Consider as an alternative to a performance bond (secondary option X13) if the Contractor has a parent company. (This option is seldom used))
Delete row if secondary Option does not apply.
X5:Sectional Completion / Include where parts of the works are to be completed before the whole of the works i.e. where the parts of the work are key milestone dates leading up to the Completion of the whole of the works
Delete row if secondary Option does not apply.
X6:Bonus for early Completion / Consider inclusion where it is desirable to provide an incentive to the Contractor to complete the works early
Delete row if secondary Option does not apply.
X7:Delay damages / Include if liquidated damages are to be paid by the Contractor for achieving Completion Date later than the Completion Date
Delete row if secondary Option does not apply.
X12:Partnering / Consider inclusion of this secondary option where the contract is to be managed as if it were a partnership (i.e. without creating a legal partnership. (Partnering is ideally suited to complex activities and large projects, the specific benefits being:

improved budgeting (all partners have an input to cost projections);

better programming (joint programming means more realistic programming and all partners have an interest in meeting programme dates);
enhanced quality i.e. fitness for purpose (the close involvement of both the institution as client and the consultant at the inception stage of the project yields dividends for the project / service end user);
better safety and environmental standards (genuine early involvement of the parties in these processes);
reduced wasted time (reduced risk exposure to litigation due to better management of dispute resolution; increased productivity and lower administrative costs by avoiding defensive work and case building, claims administration);
reduced contract management costs (improved financial performance through lower costs and better cash flows as disputes, claims and the withholding of payments are avoided);
genuine teamwork (optimum balance between design a buildability; creation of a team environment that encourages innovation and more effective application of value management and personal satisfaction amongst project participants);
greater predictability in outcomes; and
sharing of expertise and systems))

Delete row if secondary Option does not apply.
X13:Performance Bond / Include if a parent company guarantee (secondary option X4) is not required or where no performance bond is required. (Usually included)
Delete row if secondary Option does not apply.
X14:Advance payment to the Contractor / Consider the inclusion where the Contractor is required to outlay a substantial capital sum before the work commences e.g. purchase specific equipment for the works.
Delete row if secondary Option does not apply.
X15:Limitation of Contractor’s liability for design to reasonable skill and care / Consider the inclusion of this secondary option to limit the Contractor’s liability for Defects due to his design from fitness for purpose to due care and diligence. Include where Contractor is responsible for design or where Contractor is permitted to submit alternative offers in terms of the Tender Data
Delete row if secondary Option does not apply.
X16:Retention / Include if the Employer wishes to retain a fund at the end of the contract to ensure the correction of defects (Not used with main Option F)
Delete row if secondary Option does not apply.
X17:Low performance damages / Include where the damages suffered in consequence of the Contractor producing low-performance / substandard work may be liquidated
Delete row if secondary Option does not apply.
X18:Limitation of liability / Include to consider the inclusion to limit the Contractor’s liability for indirect or consequential loss, loss or damage to the Employer’s property, latent defects under design and total liability. Consider where the Contractor is responsible for design or where Contractor is permitted to submit alternative offers in terms of the Tender Data
Delete row if secondary Option does not applyDelete row if secondary Option does not apply. Delete row if secondary Option does not apply.Delete row if secondary Option does not apply.
X20:Key performance indicators / Consider this secondary option where financial incentives are provided to attain social and economic deliverables. (Not to be used together with secondary option X12:Partnering)
Delete row if secondary Option does not apply.
Z:Additional conditions of contract
of the NEC3 Engineering and Construction Contract (June 2005)
10.1 / The Employer is (Name): / Insert data
Address
Tel No.
Fax No.
Email: / Delete row if email is not permitted as a form of communication
10.1 / The Project Manager is: (Name) / Insert data
Address
Tel
Fax
e-mail / Delete row if email is not permitted as a form of communication
10.1 / The Supervisor is: (Name) / Insert data
Address
Tel No.
Fax No.
e-mail / Delete row if email is not permitted as a form of communication
11.2(13) / The works are / Describe the works clearly but briefly to enable the works to be identified
11.2(14) / The following matters will be included in the Risk Register / Identify and insert any risks that are inherent to the project. It should be noted that the Risk Register is updated following the award of the contract
11.2(15) / The boundaries of the site are / Provide data or state that the boundaries of the site are shown on drawing ...... )
11.2(16) / The Site Information is in Part C4: Site Information
11.2(19) / The Works Information is in Part C3: Scope of Work
12.2 / The law of the contract is the law of the Republic of South Africa subject to the jurisdiction of the Courts of South Africa.
13.1 / The language of this contract is English
13.3 / The period for reply is weeks / Insert period – usually two weeks
2 / The Contractor's main responsibilities
No data is required for this section of the conditions of contract.
3 / Time
11.2(3)
The completion date for the whole of the works is weeks after the starting date. / Insert number of weeks if the Contractor is not required to tender a completion date in Part 2 of the Contract Data. Alternatively state that “The completion date for the whole of the works is ……..” and insert actual date
11.2(9) / The key dates and the conditions to be met are: / Provide dates by which the works is to reach the condition stated. . (Clause 253.3 allows the Employer to recover from the Contractor additional costs he has incurred as a result of the failure of the Contractor to achieve the stated condition by the key date.)
Delete row if there are no key dates
Condition to be met / key date
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30.1 / The access dates are / Insert data or insert “whole of the works within two weeks of the starting date” where access to parts of the site is not applicable
Provision is made in Part 2 for the Contractor to state any additional accesses he will require together with the relevant access dates.
Could consider deleting this row if only the Contractor is to specify in Part 2 when access is required.
Part of the Site / Date
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31.1 / The Contractor is to submit a first programme for acceptance within weeks of the Contract Date. / Insert the number of weeks from the time that the contract comes into existence – typically not more than about 5 weeks.
Delete row where a programme satisfying the requirements of the contract has been submitted by the Contractor before contract formation and is identified in the Contract Data provided by the Contractor
31.2 / The starting date is / Provide a date or state “two weeks after the Contractor receives one fully completed original copy of this contract, including the schedule of deviations (if any) as contained in the Form of Offer and Acceptance”, as appropriate.
32.2 / The Contractor submits revised programmes at intervals no longer than weeks. / Insert the number of weeks – typically 5 weeks
35.1 / The Employer is not willing to take over the works before the Completion Date. / Delete or include where Employer is not willing to take over the works before the Completion Date

Testing and Defects

/ 42.2 / The defects date is weeks after Completion of the whole of the works. / Insert the number of weeks – typically 13 weeks for building contracts with no electrical or mechanical services and 52 weeks for all other contracts)
43.2 / The defect correction period is weeks / Insert the defects correction period in weeks – typically 3 - 4 weeks. Where different defects correction periods apply for different parts of the works, state “The defects correction period is ….weeks except that the defect correction period for …… is …….. weeks”. The compiler must insert the data association with this alternative)
except that the defect correction period for is weeks
and the defect correction period for is weeks

Payment

/ 50.1 / The assessment interval is between 12:00 hours on the day of each successive month. / State the day of the month or replace with “The assessment interval is …..weeks” or “The assessment interval is a calendar month”
51.1 / The currency of this contract is the . / State “The South African Rand.” If some of the services are to be paid for in other currencies, secondary Option X3 can be used. Change Rand to other if required
51.2 / The period within which payments are made is weeks. / State number of weeks if the default period of 3 weeks is not acceptable. If three weeks is acceptable, delete this row.
Different payment periods for different currencies may be stated
51.4 / The interest rate is % per annum (not less than 2) above the rate of the bank. / Insert rate e.g. 2% per annum above the prime lending rate of Standard Bank of South Africa Ltd. The complier should set different interest rates for each currency where secondary option X3: Multiple currencies is used as the interest rates between countries can vary significantly. In such cases, insert “The interest rate is 2% above the prime lending rate of the Standard Bank of Southern Africa for amounts in Rands and 2 % above London Interbank Offered Rate(LIBOR) for amounts due in other currencies.

Compensation events

/ 60.1(13) / The weather measurements to be recorded for each calendar month are, / Delete or amend the weather measurements as necessary that will be compared to the frequency of occurrence for a ten year period
1) the cumulative rainfall (mm)
2) the number of days with rainfall more than 10 mm
3) the number of days with minimum air temperature less than 0 degrees Celsius
4) the number of days with snow lying at 08:00 hours South African Time
5) and these measurements:
The place where weather is to be recorded (on the Site ) is / State place where measurements are to be made, eg “The place where weather is to be recorded is a suitable point within the boundaries of the site agreed to between the Project Manager and the Contractor” Reference to an existing station which measures win speeds should be made where wind speed is to be measured
The weather data are the records of past weather measurements for each calendar month which were recorded at and which are available from / Consider inserting the name of the specific site where South African Weather Service data is available. The compiler should modify the statements where wind measurements are obtained from airports or port authorities
60.1(13) / Assumed values for the ten year return weather data for each weather measurement for each calendar month are: / Omit or state assumed values where no data is available from any reliable sources in close proximity to the site
These are additional compensation events: / State additional compensation events or omit row
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Title

No data is required for this section of the conditions of contract.

Risks and insurance

/ 80.1 / These are additional Employer's risks: / State additional Employer’s risks e.g. planning permissions for portions of the work or omit row
1 /
2 /
3 /
84.2 / The minimum limit of indemnity for insurance in respect of loss of or damage to property (except the works, Plant, Materials and Equipment) and liability for bodily injury to or death of a person (not an employee of the Contractor) caused by activity in connection with this contract for any one event is R . / Provide data – usually not less than R10million
The minimum limit of indemnity for insurance in respect of death of or bodily injury to employees of the Contractor arising out of and in the course of their employment in connection with this contract for any one event is R . / Provide data – usually not less than R10million
84.2 / The insurance against loss of or damage to the works, Plant and Materials is to include cover for Plant and Materials provided by the Employer for an amount of R . / Provide data or omit if Employer does not provide Plant and Materials)
84.1 / The Employer provides these insurances from the Insurance Table / Provide details of insurances in the Insurance Table that the Employer is to provide
1Insurance against loss of or damage to the works, Plant and Materials.
Cover / indemnity:
The deductibles are
2Insurance against liability for loss of or damage to property (except the works, Plant and Materials and Equipment) and liability for bodily injury to or death of a person (not an employee of the Contractor) caused by activity in connection with this contract.
Cover / indemnity:
The deductibles are
84.1 / The Employer provides these additional insurances / Provide details of additional insurances in that the Employer is to provide
1Insurance against
Cover / indemnity:
The deductibles are
2Insurance against
Cover / indemnity
The deductibles are
84.1 / The Contractor provides these additional insurances. / Provide additional insurances if necessary, e.g.

A Coupon Policy for Special Risks Insurance issued by the South African Special Risks Insurance Association
Insurance to cover the interests of both Parties where lateral support of an adjoining property is required

1Insurance against :
Cover / indemnity:
The deductibles are
2Insurance against:
Cover / indemnity:
The deductibles are